Anime has been a significant part of our cultural landscape for years. It’s no surprise that when an anime feature film debuts in theaters, it quickly becomes the most-watched premiere of the weekend, even if it’s the second or third installment of a series primarily known among devoted fans.

Anime boasts one of the world’s most dedicated and consistent fan bases. As such, it’s understandable that streaming platforms, always eager to find the next big hit, have dramatically expanded their anime catalogs in recent years.

New mainstream. Decades have passed since the first anime series achieved success in the West, with titles such as Akira, Dragon Ball, and Ranma ½. The popularity of new hits, like One Piece and Attack on Titan, has far surpassed that of earlier productions that influenced millions of young people.

Generation Z is currently recognized as the anime generation, and its aesthetics and storytelling have become the mainstream norm. As a result, it’s a good time to examine several metrics that define a cultural landscape largely dominated by anime.

Crazy growth. Market research firm Parrot Analytics recently estimated that the average demand for streaming anime in the U.S. grew by 176% between 2019 and 2024. This surge is attributed to a greater supply of content, given that the number of anime programs tripled during that period. Another reason is an increase in casual viewers who are boosting Japanese animation’s popularity beyond dedicated fan circles. For the anime industry, this translates to annual revenues of $32 billion.

A focus on anime. A quick glance at streaming platforms reveals the significant role anime has come to play in their programming. Netflix is investing heavily in classics like Dragon Ball. It’s licensing the new series in the franchise, Daima, exclusively outside Asia. Meanwhile, One Piece’s live-action adaptation has emerged as a major success in recent months. Hulu is also competing by acquiring numerous licenses.

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Specific services. Certain dedicated platforms cater exclusively to audiovisual subgenres with devoted fan bases, such as horror and anime. For example, Crunchyroll started as a fan project in 2006, distributing anime without permission. However, its rapid acceptance prompted it to sign legal distribution deals for anime. Acquired by Sony in 2021, Crunchyroll absorbed a major competitor, Funimation, and now boasts more than 120 million registered users.

Other notable streaming services dedicated to anime include RetroCrush and HiDive, alongside several free ad-supported streaming TV channels that broadcast series such as Pokémon, Case Closed, and Inazuma Eleven 24 hours a day.

Anime everywhere. Anime has established itself as a massive creative force in streaming today. Many series that once would have adopted a Western aesthetic now take inspiration from anime. For instance, Suicide Squad Isekai, produced in Japan, is based on DC heroes but reflects anime influences. Similarly, Arcane, a major animation hit from France, is undeniably rooted in anime aesthetics. Even an American series like Rick and Morty has spawned its own anime spin-off.

According to Toonami co-creator Jason DeMarco, these trends indicate the “maturity” of anime as a stylistic approach. Moreover, the financial implications are substantial. 38% of international anime revenue is generated through Netflix, showcasing a mutually beneficial relationship.

The new normal. The rapid growth and widespread integration of anime and Asian culture are now commonplace. A prime example is South Korean show Squid Game, which still holds the record as Netflix’s biggest hit. Additionally, the staggering popularity of the recent live-action adaptation of One Piece is one of many factors contributing to a larger narrative. This evolving landscape suggests a future where anime plays a central role in shaping global pop culture.

Image | Netflix

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South Korean dramas have transcended the borders of Asian countries, and millions of people watch them worldwide. Netflix has played a big role in this trend, helping to establish South Korea as a hub for diverse and varied productions beyond its biggest hit, Squid Game. However, this could be threatening the solid foundations of the genre.

K-drama craze. In recent years, South Korean dramas have experienced unprecedented growth. Netflix has been a key player in this phenomenon, positioning South Korean content as the second most viewed globally, just behind American productions. Since 2023, K-dramas have accounted for between 8% and 9% of total viewing hours on Netflix, featuring popular titles such as Squid Game, Queen of Tears, Crash Landing on You, and Love Next Door.

Spending through the roof. Netflix’s investment in South Korean content is substantial. More than half of the popular South Korean titles on the platform are Netflix originals. Additionally, about a third are exclusive, and many are produced in collaboration with local studios.

However, production costs have skyrocketed. The average price per episode is currently around $700,000, with some shows exceeding $2 million per episode. This is more than double the costs in 2020 and significantly higher than the approximately $200,000 per episode before Netflix’s arrival. Successful series such as When Life Gives You Tangerines have budgets exceeding $40 million per season.

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Decline in production. Netflix, a powerful platform with significant financial resources, has increased production costs to create luxurious and engaging content for international audiences. The consequences are significant. First, production has decreased, particularly from medium-sized companies and traditional South Korean channels. Productions fell from 141 in 2022 to 123 in 2023, and to just 100 in 2024. Additionally, there’s pressure to create more expensive series, which has led to an increase in blockbuster productions but a decrease in average ones.

Superstars. Creators of South Korean series recognize that the cast often drives a series’ success. As a result, a large portion of the budget is allocated to lead actors, who can earn around $500,000 per episode. To address the rising series budgets that could jeopardize the industry, Netflix has decided to limit actors’ salaries to just under $300,000 per episode.

No risk. The South Korean fiction industry is at a pivotal moment, with ongoing debates about profitability versus quality. The increase in budgets has raised expectations for shows, but it’s also heightened financial risks. Unlike before Netflix’s arrival, series now need to be global hits to recover their investments.

This situation poses an additional challenge. As financial stakes rise, producers become less willing to take risks, often leaning toward conservative approaches and established formulas for success. As such, this could cause South Korean series to lose one of their defining strengths in appealing to global audiences: their ability to surprise.

Has Netflix ruined the South Korean fiction industry? It has undoubtedly contributed to a trend of inflated budgets and a demand for grand spectacle. This is currently impacting medium-sized productions, the backbone that provides stability and volume to the industry.

South Korea has a clear reference point to avoid repeating past mistakes: Hollywood. The American film industry is experiencing a creative crisis and facing bloated productions that call its future into question. For now, the South Korean industry still has the opportunity to adapt–if Netflix allows it.

Image | Netflix

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After more than a decade, Sesame Street has a new home. Here’s a hint: It starts with the letter “N.”

This week, Netflix announced that it would be the new distributor of the children’s show, ending months of uncertainty over its future. The deal is not only a win for Netflix and Sesame Workshop, the nonprofit that produces Sesame Street, but also for the public.

The new deal. In a press release, Netflix said that a new reimagined 56th season of the show would hit the platform later this year, along with 90 hours of past episodes. The move will allow the show to reach the platform’s more than 300 million subscribers, giving it a significant boost in reach.

HBO, Sesame Street’s previous distributor, only gave it access to roughly 122 million subscribers. The financial conditions of the deal between Netflix and Sesame Workshop were not disclosed.

Free for the public. While Netflix will become Sesame Street’s new distributor, episodes will still be broadcast on PBS. Importantly, the streaming company said that new episodes will premiere the same day on both the public broadcaster and Netflix.

This will be the first time in years that new episodes of the show air on PBS with a significant delay. Under the previous deal with HBO, PBS had to wait several months to broadcast new episodes after they had been released on streaming or cable.

PBS has broadcast Sesame Street since 1970.

Losing a lucrative distribution deal. The beloved children’s show had been under turmoil in recent months. In December, HBO announced that it would not renew its distribution deal for Sesame Street, which it had maintained for more than a decade. The deal was estimated to be worth $30 million and $35 million, according to The New York Times.

Previous episodes of the show will still be available on HBO under a separate $6 million per year deal.

HBO told the outlet that its decision on Sesame Street was based on a broader corporate shift away from children’s programming. Previous episodes of the show will still be available on HBO under a separate $6 million deal.

“Based on consumer usage and feedback, we’ve had to prioritize our focus on stories for adults and families,” an HBO spokesman told the Times in December. “And so new episodes from ‘Sesame Street,’ at this time, are not as core to our strategy.”

The Trump effect. Besides losing its distributor, the show also had to deal with heat from President Donald Trump, who signed an executive order to slash funding to PBS and NPR to spread what he claimed was “radical, woke propaganda disguised as news.”

The public broadcaster announced this week that it was furloughing 25% of PBS Kids staff after the Trump administration cut one of its grants.

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A bet on children’s programming. Netflix’s move underscores its bet on children’s programming, which makes up 15% of its content. In addition to acquiring the distribution to Sesame Street, the streaming platform also announced a new Peppa Pig mobile game.

Images | Netflix

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The pandemic and subsequent lockdowns had a lasting impact on the gaming industry. One of the most notable changes was the rise of a genre that had always existed but remained largely under the radar. In search of an escape from the harsh realities of the world, players flocked to titles that provided comfort and distraction. These games not only became beloved legends but also reshaped the way people think about gaming. To highlight just how much the cozy gaming revolution is taking off, Netflix is now introducing an online multiplayer experience where the goal isn’t to outcompete others, but simply to enjoy a relaxed, stress-free time together.

What are cozy games? Cozy games encompass a wide range of titles but are united by one key element: their relaxing and stress-free nature. These games typically favor exploration without rigid goals, creative expression, and emotional connection over intense challenges or competition. Unlike traditional titles, cozy games avoid elements like high-stakes combat, violence, or anxiety-inducing themes. The genre is more of a spiritual or thematic classification than a specific game type. Cozy games can be anything from RPGs to puzzle games to graphic adventures, but they all offer a low-pressure, feel-good experience—similar to the viral phenomenon of the anime girl and cat studying with lo-fi music.

The origins of cozy games. Some trace the roots of cozy games back to the 1980s with the release of Little Computer People, a game that allowed players to observe the lives of small, virtual inhabitants in a digital house. Though interaction was minimal, the game’s appeal lay in watching the characters’ daily routines—essentially a precursor to The Sims. Over the years, cozy games evolved into the modern indie hits gamers know today, like Journey, Stardew Valley, and Harvest Moon, which emphasized creativity and personal interaction over traditional gameplay elements.

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Pandemic relaxation. Perhaps no game embodied the spirit of the pandemic’s cozy gaming boom better than Animal Crossing: New Horizons. Released in March 2020 for the Nintendo Switch, it became a massive hit, selling more than 13 million copies in just six weeks. The game’s emphasis on farming, relationship-building, and customization provided a much-needed escape, especially as real-life interactions became more isolated. The game allowed players to create their idealized escapes, offering a reprieve from the harsh realities of the time.

The cozy explosion. In the last five years, the cozy game genre has exploded. According to Steam data, the number of games labeled “relaxing” increased by 309% from 2019 to 2023, from 523 to 2,142 titles. Even more telling is the growth of the cozy game label itself, which jumped by 1,091% from 15 games in 2020 to 371 in 2024. This surge reflects an undeniable trend.

Netflix joins the cozy craze. Netflix has become the latest company to embrace the cozy gaming trend. It recently announced Spirit Crossing, an ambitious MMO developed by Spry Fox, creators of the beloved cozy game Cozy Grove. Set in an anime-inspired world, Spirit Crossing focuses on player cooperation and community-building rather than competitive gameplay. In this game, players can participate in activities like virtual parties, collaborate with others, and explore a constantly evolving world full of secrets and surprises.

Image | Netflix Games

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Despite Apple’s excellent financial health, it’s been incapable of turning Apple TV+ into a profitable area of business.

When Apple started implementing cost-cutting measures in its content productions a few months ago, it became clear that the company would have to abandon its goal of becoming a major player that could face off against Disney or Warner Bros. In addition, it was also apparent that the hole Apple TV+ created in the company’s finances was excessive.

But as it turns out, it was worse than even the most pessimistic projections: Apple TV+ loses a billion dollars per year.

It’s not another Netflix. In an interview with Variety on Thursday commemorating his 25th year at the helm of Netflix, Ted Sarandos said the following when asked about Apple’s role in the streaming market: “I don’t understand it beyond a marketing play, but they’re really smart people. Maybe they see something we don’t.”

While Sarandos’ comments might be a harsh take, it’s clear who the leader is in this race. Last July, Bloomberg reported that Apple TV+ had to make cuts immediately because it had less viewing in a month than Netflix had in a day. As such, the chasm between the two competitors is undeniable.

A billion dollars per year. A report from The Information analyzed the financial health of the platform after five years. The report states that Apple TV+ loses about $1 billion per year. As noted by 9to5Mac, although it was never a secret that the streaming service wasn’t profitable, the report from The Information was the first to put concrete numbers on its losses.

Big investment, little revenue. These astronomical figures can be attributed to the high cost of Apple movies in recent years. Movies like Napolean from Ridley Scott and Killers of the Flower Moon from Martin Scorsese were the first and cost a fortune. However, the real financial bomb was Argylle, which cost $200 million to make and only brought in $35 million. After that, Apple worried that even a surefire hit like Wolfs, starring Brad Pitt and George Clooney, could result in disaster, so it premiered the film directly on the streaming platform. In the end, Apple took a loss that could have been even worse if it premiered it theaters.

The Severance bump. Interestingly, when it comes to reputation, Apple TV+ is having its biggest moment ever. With its second season, Severance has gone from being a cult product to one of the most acclaimed shows of the year. Some say that in the last month, Severance could have added two million users to Apple TV+, which we would add to the 45 million that The Information claimed it had at the end of 2024. Meanwhile, there’s another potential hit on the horizon: the return of Ted Lasso.

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All’s good at Apple. While these numbers might spell disaster for Apple’s streaming ambitions, they by no means indicate that the company is doing poorly. Last quarter, Apple closed the year with $124 billion in revenue, of which $36 billion can be considered profit. Besides some obstacles, such as the fall of sales in China, Apple’s business works for Apple. In fact, even when it comes to subscriptions—the area of business where Apple TV+ lives, but also the home of Apple Music, the App Store, iCloud, and Apple Care—the company performed well, growing 14% year-over-year.

In other words, it’s bad news for Apple TV+, but the service’s red ink is by no means making the tech giant stumble.

Image | Apple

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Why do on-demand content platforms increase their prices year after year, even when users claim they’ll cancel their subscriptions? This seems unusual. In a different context, price hikes would typically lead to massive cancellations. However, Netflix appears largely unbothered.

Context. Despite the price increases and the wave of cancellations often discussed on social media, Netflix’s profit was $10.25 billion in the fourth quarter of 2024. This is a 16% increase from the same quarter in 2023 and the best results since 2021. So, were users really canceling their subscriptions in large numbers?

Interestingly, Netflix had expected just 9.8 million new U.S. subscribers during the fourth quarter of 2024, but 19 million ended up joining the streaming platform.

Users come back. According to data from consulting firm Antenna, price increases do lead to cancellations, but users often return. Netflix’s situation is especially interesting because the rate of returning users is higher than on other platforms.

Data. Antenna says that 50% of users who cancel their subscriptions resubscribe within six months. In addition, 61% of canceled subscribers return within a year. In other words, Netflix recovers six out of 10 cancellations after a year.

If users cancel due to a price increase, they typically return at the new higher price, which helps Netflix make up for the cancellations that weren’t reversed. Interestingly, many returning users choose a more affordable plan that includes ads. In fact, 55% of new subscribers select the ad-supported plan.

Netflix against the world. Data reveals that Netflix’s subscription win-back rate is much higher than that of other streaming services. Netflix recovers 50% of its users after six months, while the average recovery rate for other platforms is only 34%. Notably, Netflix recovers two out of 10 cancellations within just one month.

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Limited growth. Netflix has consistently innovated its programming, expanding from TV shows and films to include sports and live events. With 300 million subscribers, the strategy has clearly been effective, but it isn’t perfect.

The company recognizes that continued growth will be challenging. “We will occasionally ask our members to pay a little more so that we can reinvest to further improve Netflix… [We’ll] continue to invest in programming and deliver more value for our members,” a Netflix spokesperson recently said. In other words, prices will keep increasing.

Netflix knows that attracting new subscribers won’t be easy moving forward, which likely explains the company’s decision to stop disclosing subscriber numbers. Instead, it’ll share data on audience metrics, views, profits, and growth, but users won’t know how many subscribers Netflix has. Subscriber figures will likely remain undisclosed until the streamer reaches milestones of 400 or 500 million, which it can then leverage for publicity.

Image | Venti Views

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When 3 Body Problem–a series based on the modern classic by Chinese sci-fi author Lui Cixin–was first released on Netflix, there was much speculation around its budget. The TV adaptation received a mixed response from audiences, leading to doubts about its continuation. The streaming platform recently released the production costs for the series, aiming to quell the criticism and showcase its confidence in the project.

46% more expensive than originally estimated. Media outlets, including The New York Times, Los Angeles Times, and The Hollywood Reporter, estimated the production cost to be around $20 million per episode, comparable to successful series like Stranger Things. However, according to statements from Netflix reported by Forbes, each episode actually cost around $29.1 million, which is 45.7% more than the original estimates. This brings the total cost of the series to about $233.1 million, surpassing that of many Marvel blockbusters.

Necessary changes. The audience response to 3 Body Problem wasn’t as spectacular as Netflix had hoped, prompting a shift in the adaptation’s approach. The series is now structured as a choral narrative with interconnected plots spanning different timelines. This results in a more intricate and cohesive story than the original novel, which presents its plot threads more vaguely. Additionally, the new direction appears to align with popular ensemble dramas like Game of Thrones. Netflix continues to search for a successor to Stranger Things’ inevitable end.

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Limited success. The numbers weren’t as impressive as Netflix had hoped either. The series faced a negative reception in China, which was somewhat predictable. The 3 Body Problem showrunners rewrote the story to make it more appealing to international markets–a London-centric plot with a multiracial cast–but that didn’t resonate as intended.

It only reached the second spot in the non-English most-watched ranking during its first week, garnering 81.7 million hours watched and 11 million views. Nearly a year after its premiere, the series has failed to break into the global top 10 in that category, trailing behind productions such as La Palma, Berlin, Lupin, Money Heist, and Squid Game.

Always ahead. Netflix’s recent announcement regarding the actual budget for 3 Body Problem may be an attempt to reignite interest before announcing the release date for the second season. The upcoming installment will adapt The Dark Forest, the second volume of Lui’s trilogy.

Netflix has been somewhat erratic in its announcements of new seasons for this series. Initially, it mentioned “additional episodes,” suggesting the platform’s desire to avoid leaving the story unresolved. Eventually, it confirmed that it’d tell the complete story over two more seasons.

The curse of Netflix series. Netflix is clearly striving to avoid another sudden cancelation with this show, which is undoubtedly one of its most ambitious projects in years. For some time now, it seems that the platform has been moderating the number of series canceled after only one or two seasons. Of course, there’ve been exceptions, including KAOS, That ‘90s Show, Dead Boy Detectives, Ratched, Shadow and Bone, and Lockwood & Co., among the most recent.

With 3 Body Problem, Netflix seems to have decided that, like with 1899, an abrupt ending without proper closure is like completely removing the series from its catalog. This approach also limits the potential for new seasons to reengage viewers with previous ones. In fact, this was recently the case with Squid Game. The key now is to find the right balance between expense and profit.

Image | Netflix

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Just days after its release, the second season of Squid Game is already catching up with its highly successful first installment. Whether it’ll achieve similar success remains to be seen, but for now, Netflix’s massive investment in marketing seems to be starting to pay off.

126.2 million views. At the time of publication, the second season has amassed an impressive 126.2 million views. Within its first four days, it garnered 68 million views, and by the end of its first full week, it had reached 58.2 million additional views. This achievement makes it the fastest series in Netflix history to reach this milestone.

Second most-watched show. As expected, the second season has made its mark as the second most-watched non-English show on Netflix. In its first week, it ranked seventh. However, by the second week, it had climbed to second place, surpassing all but the first season of Squid Game, with 265.2 million views in its first 91 days of streaming. If the second season maintains its current momentum, it’s likely to exceed the viewership of the first installment.

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Momentum for the first season. Unsurprisingly, the first season is currently experiencing an unusual popularity for a series that was first released in 2021. In the second week following the release of the second season, the first installment reached 13.6 million views, securing second place in the ranking of the most-watched non-English shows of the past seven days.

How does this compare to English-language shows? The first season of Squid Game is the most-watched show in the platform’s history across all languages, even though English-language series generally have a larger audience on Netflix. Taking into account English and non-English productions, you can gain a clearer picture of the success of Squid Game. In just two weeks, the second season has become the fourth most-watched Netflix series of all time. It’s only surpassed by the first season of Wednesday and the fourth season of Stranger Things. This milestone is impressive and likely just the beginning.

A comeback worthy of its predecessor. After a three-year wait, there were reasonable doubts among the audience about whether this return would live up to the original. The feedback seems positive and is supported by numbers that can’t be attributed solely to marketing. The second season successfully retains the visual and thematic elements from the first installment while introducing new narrative twists and, importantly, new characters navigating a labyrinth of lethal challenges.

Image | Netflix

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When Netflix began launching its ad-supported plan in November 2022, the company was uncertain on whether it would be a wise strategy. The streaming giant was entering a realm it had previously avoided. Just a year earlier, the company had said, “When you read speculation that we are moving into selling advertising, be confident that this is false,” emphasizing that staying ad-free was central to its identity.

Two years later, it seems that Netflix made the right decision. The company’s ad tier now boasts 70 million monthly active users worldwide. This growth has been consistent over time, and interestingly, more than 50% of new Netflix subscribers in countries where the ad plan is available are choosing this option.

Netflix’s Ad Tier Proves Successful

Netflix’s advertising strategy has become a crucial part of its business model. The ad-supported plan started with 22 million monthly active users in January 2024 and surged to 40 million users by May. In a statement released on Tuesday, Amy Reinhard, Netflix’s president of advertising, said, “We’re excited to… continue to see steady progress across all countries’ member bases.”

The shift toward advertising has enabled Netflix to offer a more affordable subscription option. The Standard plan with ads provides 1080p quality, allows downloads on up to two devices, and permits simultaneous playback on those same devices for $6.99 in the U.S. For their part, advertisers benefit from access to a measurement system that assesses the performance of their advertising campaigns.

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This is how ads look on Netflix.

In April 2022, Netflix considered launching an ad-supported plan after experiencing its first subscriber decline in a decade. At that time, the streaming landscape was quite different. Hulu and HBO Max had already embraced advertising, while Disney+ was preparing to follow suit. Now, ad tiers have become a standard offering across most streaming platforms.

Netflix has now moved beyond that challenging period. The number of subscribers has consistently grown in recent years, even as subscription prices have increased. The company added 5.1 million subscribers in the last quarter, bringing its total to an impressive 282.72 million. Additionally, Netflix surpassed analysts’ expectations and reported a net profit of $2.4 billion.

Image | freestocks

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The inclusion of ads on streaming platforms is becoming more common. This was once frowned upon because subscribers were already paying for the service. However, due to high expenses and the introduction of new, higher-priced, ad-free tiers, these platforms now see ads as another way to increase revenue.

The same amount of subscribers. According to the Financial Times, Amazon hasn’t seen a decrease in Prime Video subscriptions since it started showing ads in January. Similarly, Netflix didn’t see account cancellations when it raised prices, enforced restrictions on shared accounts, and introduced advertising in its programming.

More ads. Kelly Day, vice president of Prime Video International, told the Financial Times that the platform will increase the number of advertising slots in 2025. Currently, the streaming service shows ads at the beginning of movies and occasionally during films and TV shows in blocks of two or three. Day said the ad load had been intentionally kept “very light” as a “gentle entry into advertising that has exceeded customers’ expectations.”

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200 million people watching ads. Amazon reports that 200 million people globally watch ads on its platform. However, not all Amazon Prime account holders are necessarily viewers of the ads because not all Amazon Prime account holders use Prime Video even though the service is included in their membership. In any case, this is the number of potential target users the company communicates to advertisers. Half of the viewers are located in the U.S.

Interactive ads. In the future, Amazon hopes more subscribers will pay an extra $3 a month to remove ads on movies and TV shows. However, for now, the company is getting creative and plans to introduce interactive, “shoppable” ad formats. These will allow viewers to add items to their Amazon cart or get more information about brands without leaving the streaming service. This integration with its e-commerce platform gives Amazon a significant advantage in utilizing these capabilities.

All platforms are giving ads a try. Netflix was the first platform to experiment with this disguised price rise. Unlike Prime Video, Netflix emphasizes ad-free subscriptions and has been successful so far. Previously, platforms like Disney+ and Max either advertised directly or included advertising. They all changed their pricing early this year, with Prime Video being the most resistant to including advertising. However, business seems to be doing well: Netflix has more subscribers than ever, and Amazon announced advertising revenues of $12.8 billion in the second quarter of 2024. Clearly, advertising is here to stay.

Image | Amazon Prime Video

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